Im a hardware designer by day, gamer at night.
My guess is they are loosing money on the deal if you account for the time and resources spent outside of the BOM. Heck the touch screen itself is probably > $150 in those quantities. Factor another $20 battery, and $30-$50 for the OMAP, ~$50 for the PCB depending on # of layers and manufacturer, you're looking at ~$250 not counting case and other parts.
My opinion is they are probably close to breaking even on the parts for the initial 3000, and in the red if you account for the time spent designing. But thats not why you do a project like this, you do it to gain exposure and experience for when you design your first for profit consumer electronic. aka. Pandora 2!
Actually, the screen price is definitely wrong. Being the paranoid person I am, i looked for a place where I could buy replacement touch screens for the Pandora (It has the same screen as the Archos 605 wifi). I can buy a replacement, in quantitys of just 1, for 89.99. If I order 99 or more, it is only $54.99. No way it cost them $150 in quant. 3000. That alone gives them a good extra $100 per unit, according to your estimate.